Crane Company sells 8% bonds having a maturity value of $1,420,000 for $1,312,340. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.           Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate      %     LINK TO TEXT       Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38,548.) Schedule of Discount Amortization Effective-Interest Method Year   Interest Payable   Interest Expense   Discount Amortized   Carrying Amount of Bonds Jan. 1, 2020   $     $     $     $   Dec. 31, 2020                 Dec. 31, 2021                 Dec. 31, 2022                 Dec. 31, 2023                 Dec. 31, 2024

Q: Blue Company issued $ 396,000 of  10%,  20-year bonds on January 1, 2020, at  102. Interest is…

A: Semiannual interest payment= face value of bonds x rate of interest x no. of months/12 = $396,000 x…

Q: On January 1, 2019, Shrimp Company issued its 9% P9,000,000 face value bonds, which matures on…

A:

Q: Tano Company issues bonds with a par value of $91,000 on January 1, 2019. The bonds’ annual contract…

A: Bond Issued at Par:- When the company issued bonds at the face value of the security is known as the…

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

Q: Flounder Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: Since there are multiple questions asked, answer will be given for first question only, to get other…

Q: Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds’ annual…

A: Discount on bonds at issuance = Par value of bonds - Issue price of bonds

Q: On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.

Q: On January 1, 2019, Learned Inc. issued $105 million face amount of 20-year, 14% stated rate bonds…

A: Proceeds (Issue price) of bonds=Present value of semiannual interest payment+Present value of…

Q: On January 1, 2021, a company issues 3-year bonds with a face value of $50,000 and a stated interest…

A: Interest expense = Issue price of bond × Market interest rate Cash paid = face value×stated interest…

Q: On January 1, 2020, Burger Company issued P2,000,000 of 10-year, 8% bonds at par. The bonds, dated…

A: Bonds carrying amount at January 2, 2020 = Par value of bonds - Bond issue costs

Q: On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which…

A: The bonds payable are issued at premium when market rate is less than the coupon rate of bonds…

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: 12% bonds[Financial Asset @FVTPL]…

Q: On January 1, 2021, Crane Ltd. issued $640,000 of 5%, 5-year bonds. The bonds were issued to yield a…

A: The process of recording financial activity for the first time in the books of accounts is known as…

Q: Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: JOURNAL ENTRIES

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. Explain the amount of the premium on these bonds at issuance.

Q: On January 1, 2020, Burger Company issued P2,000,000 of 10-year, 8% bonds at par. The bonds, dated…

A: Bonds carrying amount at January 2, 2020 = Var value of bonds - Bond issue costs

Q: Swifty Company sells 8% bonds having a maturity value of $1,600,000 for $1,369,300. The bonds are…

A: The question is based on the concept of Financial Accounting.

Q: Bramble Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The bonds are…

A:

Q: On March 1, 2020, Mitchell Inc. issued 60, 6%, $1,000 bonds dated March 1, 2020 for $62,626. The…

A: Bond Payables: In the financial statement, bonds payable represents the amount owing to bondholders…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $730,000. The bonds’ annual…

A: Formula: Premium on Bonds = Sell price - PAR value Deduction of PAR value from Sell price of bonds…

Q: Sheffield Company sells  10% bonds having a maturity value of $ 1,300,000 for $ 1,206,280. The bonds…

A: Annual interest payment = face value of bonds x rate of interest x no. of months/12 = 1,300,000 x…

Q: On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated…

A: Amortization of a bond discount refers to the writing off the bond discount over the life of bond.

Q: On January 1, 2019, Calvert Company issues 10%, $200,000 face value bonds for $207,259.79, a price…

A: journal entry is the act of keeping or making records of any transactions that is listed on the…

Q: On January 1, 2020, Barbie Company purchased 4,000 of $1,000 face value, 10% bonds of Ken Company…

A: Bond: It is long-term source of finance issued by the firm to raise money. It has a fixed maturity…

Q: Whispering Company sells 10% bonds having a maturity value of $1,410,000 for $1,308,350. The bonds…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On January 1, 2022, Patrick Company purchased serial bonds with face amount of P3,000,000 and stated…

A: Purchase price of serial bond = Present value of annual interest  payments  discounted at Yeild per…

Q: At the beginning of this year, MM purchased P6,000,000, 9% face amount bonds. The interest is…

A: For calculating the issue price of bonds , we need to calculate the present value of future cash…

Q: A company is issuing $330,000 worth of 5-year bonds on August 14, 2020, bearing an interest rate of…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds…

A: Workings: Sold 10 % bonds

Q: Spencer Company sells 10% bonds having a maturity value of £3,000,000 for £2,783,724. The bonds are…

A: Bonds refer to borrowing security that is issued by the company to raise funds from the market by…

Q: On January 1, 2021, EXPERT EFFORT Company purchased serial bonds with face value of P3,000,000 and…

A: Under the amortized cost method, present value of the bond can be calculated by discounting all the…

Q: On December 31, 2019, Ulster Co. issued P200,000 of 8% serial bonds, to be repaid in the amount of…

A: Bonds appear to be a financial vehicles  whereby an investor or individual lends money to a company…

Q: Pierce Company issued 11% bonds, dated January 1, with a face amount of $800,000 on January 1, 2018.…

A: The question is based on the concept of Corporate Finance

Q: On June 30, 2020, Ivanhoe Company issued $4,420,000 face value of 15%, 20-year bonds at $5,417,560,…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds…

A:

Q: On January 1, 2018, Arabian Company purchased serial bonds with face amount of P3,000,000 and stated…

A: A bond is a debt instrument issued by large businesses and government organizations to raise debt…

Q: On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable…

A: Solution : Given: Face value        =4000000 Coupon rate    =16% Interest payable           =semi…

Q: Spiller Corp. plans to issue 6%, 9-year, $550,000 par value bonds payable that pay interest…

A: Number of periods = 9*2 Number of periods = 18   Market rate = 4%/2 Market rate = 2%   Coupon rate =…

Q: XYZ company issues R$100,000 in bonds dated January 1, 2020, due in five years with 9 percent…

A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: Sheffield Company sells 8% bonds having a maturity value of $2,180,000 for $2,014,720. The bonds are…

A: Effective interest rate is the return on saving account on an investment.

Q: On January 1, 2019,CalderetaCompany purchased 5-year bonds with face value of P8,000,000 and stated…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: Lets understand the basics. When debt investment purchased and designated at FVTPL then interest…

Q: (b) Splish Inc. issued $590,000 of 9%, 10-year bonds on June 30, 2020, for $488,488. This price…

A: Calculation of interest expense as on October 31, 2020, using effective-interest method: Thus, the…

Q: On January 1, 2018, Rei Company obtained $4,000,000 of 12% face value bonds at $3,767,000 to be held…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: Bramble Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The bonds are…

A: Bond Amortization is similar amortization of loan which is prepared to determine the actual interest…

Q: Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest…

A: Face Value of Bond = $500000 Coupon Rate = 10% per annum Coupon Amountfor 6 months = 500000*10% /2 =…

Q: On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc.,  9% bonds at a…

A: The question is based on the concept of Financial Accounting.

Q: On January 1, 2019, Toni Corporation issued 3,000 of its 9%, P1,000 bonds when the prevailing market…

A:

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.